Insufficient, the strategy against price increases; there will be a new plan: AMLO

In economic matters, controlling inflation has become the main concern of the current administration due to the impact it has on the popular economy, said President Andrés Manuel López Obrador, who highlighted the confluence of positions with producing sectors and self-service stores to reach an agreement and define a set of basic products in which the rise in prices will be contained and even reduced in some cases.

During his morning conference, López Obrador ratified that the terms of this new anti-inflationary plan (which will succeed the one implemented in May) will be announced next Monday.

After pointing out that it is a global phenomenon associated with the pandemic and the war in Ukraine, he asserted that the neoliberal measures of increasing interest rates to contain it are not enough and, in addition, stop economic growth.

It’s like when a car heats up, that’s the inflation, so that it doesn’t heat up, it turns off. Yes, there is no more inflation, the car no longer heats up, but it does not run, there is no longer any growth. The question is: how do we grow without inflation? We are not trusting what the central banks do when applying this formula to stop it. We are taking heterodox measures, such as the gasoline subsidy that is not in the neoliberal policy formulas, because the subsidy is demonized.

Curb minimum wages, another neoliberal mistake

Emphasizing the importance of protecting the popular economy, the president asserted that contrary to neoliberal salary policies in Mexico, when the increase for workers was always below inflation under the pretext of not encouraging higher price increases, his management they have increased salaries 65 percent, accumulated, above inflation.

However, he acknowledged: wages may be increasing, but if there is inflation it is as if wages were not increased and the greatest repercussion is in the popular economy, that’s why it’s acting.